Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
ABC Inc. manufactures and sells toys. Price and cost data are as follows: $27.00 $6.00 Selling price per unit (package of 2 CDs). Variable costs
ABC Inc. manufactures and sells toys. Price and cost data are as follows: $27.00 $6.00 Selling price per unit (package of 2 CDs). Variable costs per unit: Direct material Direct labor..... Artist's royalties. Manufacturing overhead..... $6.00 $4.50 $4.00 Selling $1.00 $21.50 $190,000 expenses... Total variable costs per unit... Annual fixed costs: Manufacturing overhead....... Selling and administrative Total fixed costs. Forecasted annual sales volume (120,000 units). $300,000 $490,000 $3,240,000 What is ABC Inc.'s contribution margin (CM)? Select one: O a. 624,000 O b. 600,000 O c. 660,000 O d. 540,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started